Various Opportunities for Future Generali
Transcript of Various Opportunities for Future Generali
I n v e s t o r P r e s e n t a t i o n
Disclaimer
The views expressed here may contain information derived from publicly available sources that have not been independently verified, and no representation or warranty is made as tothe accuracy, completeness, reasonableness or reliability of this information. This presentation also includes certain industry data and projections that have been obtained fromindustry publications and surveys. Industry publications and surveys and forecasts generally state that the information contained therein has been obtained from sources believed to bereliable, but there is no assurance that the information is accurate or complete. Neither the Company nor any of its advisors or representatives have independently verified any of thedata from third-party sources or ascertained the underlying economic assumptions relied upon therein. All industry data and projections contained in this presentation are based ondata obtained from the sources cited and involve significant elements of subjective judgment and analysis, which may or may not be correct. For the reasons mentioned above, youshould not rely in any way on any of the projections contained in this presentation for any purpose. This presentation should also not be relied upon as a recommendation or forecastby Phillips Carbon Black Limited and any of their subsidiaries and cannot be relied upon as a guide to future performance. Viewers are advised to use the information contained hereinat their own risk.This presentation contains 'forward‐looking statements' – that is, statements related to future, not past, events. In this context, forward‐looking statements often address our expectedfuture business and financial performance, and often contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' or 'will.' Any forward looking information in thispresentation including, without limitation, any tables, charts and/or graphs, has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward–looking statements by their nature address matters that are, to different degrees, uncertain. These uncertainties may cause our actual future results to be materially different thatthose expressed in our forward‐looking statements. We do not undertake to update our forward‐looking statements. We caution you that reliance on any forward‐looking statementinvolves risk and uncertainties, and that, although we believe that the assumption on which our forward‐looking statements are based are reasonable, any of those assumptions couldprove to be inaccurate and, as a result, the forward‐looking statement based on those assumptions could be materially incorrect.In no event shall the Company or its directors be responsible to any person or entity for any loss or damage, whether direct, indirect, incidental, consequential or otherwise, arising outof access or use or dissemination of information contained in this presentation, including, but not limited to, loss of profits. No representation, warranty, guarantee or undertaking(express or implied) is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any estimates, targets and opinions,contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein and, accordingly, none of the Company, its advisors andrepresentative and any of its or their affiliates, officers, directors, employees or agents, and anyone acting on behalf of such persons accepts any responsibility or liability whatsoever, innegligence or otherwise, arising directly or indirectly from this presentation or its contents or otherwise arising in connection therewith. Individual situations and local practices andstandards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit.You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent analysis as you mayconsider necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject to change without notice and past performance is not indicative of futureresults. By attending this presentation, you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and thatyou will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business.Phillips Carbon Black Limited provides a wide array of presentations and reports. Such presentations and reports should not be reproduced, re-circulated, published in any media,website or otherwise, in any form or manner, in part or as a whole. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited.Theinformation in this presentation has been prepared for use in presentations by Company for information purposes only and does not constitute, or should be regarded as, or form partof any issue, invitation, inducement or advertisement to sell or issue, or any solicitation or any offer to purchase or subscribe for, any securities of the Company in any jurisdiction,including the United States and India, nor shall it, or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract orcommitment to purchase or subscribe for any securities of the Company in any jurisdiction, including the United States and India. This presentation does not constitute arecommendation by the Company or any other party to sell or buy any securities of the Company. This presentation and its contents are not and should not be construed as aprospectus or an offer document,, including as defined under the Companies Act, 2013, to the extent notified and in force or an offer document under the Securities and ExchangeBoard of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended.By accessing this presentation, you accept this disclaimer and any claims arising out of the use of the information from this presentation shall be governed by the laws of India and onlythe courts in Kolkata, and no other courts, shall have jurisdiction over the same.The presentation is dated May 2019
2
3
PCBL: A part of RP-Sanjiv Goenka Group
Touching Lives
in more ways than one
4
Source: Company
Carbon Black • Pure elemental carbon in the form of black powder
• Produced by thermal decomposition of gaseous or liquid hydrocarbons undercontrolled conditions
• Primary application - Reinforcement agent in tyres
• Its unique properties make it useful for pigmentation, UV stabilization and alsoas a conductive agent
• Performance is related to properties of specific surface area, particle size andstructure, conductivity and colour
5
Carbon Black and its Applications
Applications
Rubber
(93%)
Tyre(73%)
Other rubber goods
(20%)
Non Rubber
(7%)
PlasticsCables and
FibersInks and Paints
Carbon Black Applications
6
Company Overview
Industry Overview
Key Investment Highlights
Growth Strategies
Appendix
6
Key Milestones
Acquisition of Gujarat Carbon
Ltd; Adding 25,000 MTPA
Amalgamation with Carbon and Chemicals Ltd, Kochi adding 40,000
MTPADurgapur capacity increased by
32,000 MTPA (1997/98)
Baroda Expansion of 70,000 MTPA & Power Plant of 12 MW,Durgapur capacity increased by
25,000 MTPA (2003/04)
1960
1996
1997
2004
Setup in collaboration with a US company Phillips Petroleum
New Soft Black Line of capacity 50,000 MTPA initiated at Mundra
Expansion of 10 MW co-generation power plant at Kochi
2011
2014
Capacity addition of 12,000 MT at Durgapur
Expansion of 8 MW co-generation power plant at Mundra
OSHAS 18001 certification awarded
Capacity increased by 43,000 MTPA across plants by
debottleneckingIATF 16949:2016 awarded to
Kochi Plant
2018
1974
Expansion of Capacity at
Durgapur facility to 36,000 MTPA
Expansion of Capacity at Kochi facility by
50,000 MTPA
20122013
2009
Established new facility at Mundra of 90,000 MTPA , and Power Plant of 16MW and 30 MW at Mundra
and Durgapur (2009/10)
1962
Started production at Durgapur facility with 14,000 MTPA capacity
1995
Durgapur capacity enhanced to 78,000
MTPA
Source: Company 7
Capacity increased by 56,000 MTPA in
Mundra Plant
2019
8
Company Overview
Industry Overview
Key Investment Highlights
Growth Strategies
Appendix
6
• Strong focus on R&D for expansion of specialty portfolioo Over 50 grades of rubber carbon black and specialty carbon blacko Increasing volumes of specialty grades
• Leadership position in carbon black in India, with a strong global footprint o Largest carbon black company in India by capacity and 7th largest carbon black company globally by sales in 2016o Presence in 37 countries
• Strategically located manufacturing facilities o All plants are located in proximity to tyre plants as well as portso Seamless capability to switch between alternative feedstocks
• Strong customer relationship o Key customers include major tyre companies, both Indian and Globalo Long term relationships with key tyre and non-tyre customers
• Co-generation of power using tail gaso Self reliance for power consumptiono Significant amount of power generated is sold externally – stable sources of revenue and profits
• Robust financial performance with a strong balance sheet
1
2
3
5
4
6
9
Key Investment Highlights
Source: Company, Notch, Crisil
Leadership Position in Carbon Black in India, With a Strong Global Footprint
Company Capacity (KTPA)
Phillips Carbon Black 571
Birla Carbon (SKI Carbon) 314
Himadri Specialty Chemicals 120
Continental Carbon 85
Ralson Carbon 40
Largest carbon black company in India
Strong Global Footprints | Presence in 37 countries
Saudi ArabiaUAE
Middle East
Asia
South America Africa
KenyaSouth Africa
Peru
China India PhillipinesSingaporeNepal Australia
North America
USACanada
Taiwan Japan Malaysia VietnamIndonesia Sri Lanka
Europe
BelgiumFranceGreeceGermanySpainUK
7th Largest Carbon black company globally1
10% market share in carbon black in Asia (ex China)1
Presence across 37 countries
Largest Indian exporter of carbon black
1
Source: Company, Crisil; Note: 1Based on 2016 sales10
2.432.94 3.10 3.08
0.92
0.93 0.92 0.953.35
3.87 4.02 4.03
FY16 FY17 FY18 FY19
Domestic Sales (Lakh Tons) Export Sales (Lakh Tons)
Strategically located manufacturing facilities across India Benefits of plant locations
Easy access to raw materials and international customers with proximity to ports
Lower risk of business interruption with multiple manufacturing location spread across India
Easy grid connectivity for sale of surplus power
Seamless capability to switch between alternative feedstocks
Source: Company 11
Strategically Located Manufacturing Facilities2
Lower logistics cost on account of well spread manufacturing facilities and proximity to customers
1
2
3
4
5
1
Mundra unit
Palej unit
Kochi unit
Durgapur unit
Plant Carbon Black (MTPA)
Durgapur 1,63,500
Mundra 2,04,750
Palej 1,10,250
Kochi 92,500
Total 5,71,000
Co-generation power plants at all manufacturing facilities
Significant amount of power generated is sold externally Increasing Power Revenue
30
24
12
10
76
Durgapur Mundra Palej Kochi Total
Capacity (MW)
372
484450
488
225
303272
296
FY16 FY17 FY18 FY19
Power Generated (MU) Power Sold (MU)
7685 85
96
FY16 FY17 FY18 FY19
Power Sales - External (Rs Cr)
Co-generation of Power Using Tail Gas3
• Co-generation of power from tail gas
• Power capacity is sufficient for captive consumption, 60%
of the power generated was sold to third parties in Fiscal
2018
• Co-gen power plant at Palej is registered under the CDM1
mechanism of UNFCCC2
Source: Company; Note: 1Clean Development Mechanism; 2United Nations Framework Convention on Climate Change 12
50+ grades of carbon black, out of which 24 are specialty carbon black
Polyester textile industry
Wire
Increasing focus on specialty carbon black…
Strong focus on R&D
4,825
8,246
16,430
19,300
FY16 FY17 FY18 FY19
Specilaity carbon black sales (MT)
• State of the art R&D facility at Palej
• Focus on improvement of Process and Machine
Technology, Yield Improvement, Feedstock Efficiency,
Customization of Grades and New Product
Development.
• Commercialization of 14 new grades of carbon
black in the last three fiscals
• Dedicated lines for the manufacturing of specialty
carbon black
• Strong portfolio of 24 Specialty grades
• Launched high end MCF grades under brand name
‘Bluemina’ in 2017-18
• One of the few companies in the world to meet US
FDA requirements for direct/indirect food contact
applications like plastics food trays and cutleries
Geotextile/Geomembrane
Paints/CoatingsEngineering
plasticsNews ink
Strong Focus on R&D for Expansion of Specialty Portfolio4
Source: Company
…Leading to a significant increase in sales of specialty carbon black grades over the last few years
Amongst select few global companies with Specialty Carbon Black
portfolio - used in fibers, pressure pipes, paints, inks, coatings, wire &
cables, food contact plastics and engineering plastics
Applications for Specialty Carbon Black
13
R&D Centre at Palej
14
4
Key customers include major tyre and non rubber companies - both Indian and Global
Long term relationships with key customers
Well diversified portfolio of tyre and non-tyre customers
Consistently high revenue share from Top 10 customers
59%
60% 60%61%
FY16 FY17 FY18 FY19
Revenue share of Top 10 customers
Product portfolio strategically aligned with business needs of customers
Joint product development for customized requirements
Strong Customer Relationship 5
Source: Company 15
Improving Margin Profile
Improving Return Profile Coupled with reducing Leverage
Improving Utilization rates
11.4%
15.8%
16.6%18.0%
0.9%
3.6%
9.0%
11.0%
FY16 FY17 FY18 FY19
EBITDA* Margin PAT Margin
10.5%
16.5%
22.0%
31.0%
1.5%
6.1%
16.7%
24.0%
FY16 FY17 FY18 FY19
ROCE ROE
Robust Financial Performance With A Strong Balance Sheet 6
Source: Company: Note:*Adjusted for Forex/hedging; ROCE = EBIT/Capital Employed (Avg of Opening & Closing of the FY); ROE = PAT/Shareholders Fund;
Debt/Equity = Gross Debt/(Equity Capital + Reserves) 16
1.00
0.670.52 0.48
FY16 FY17 FY18 FY19
Debt/Equity
81.4%
94.2% 95.1% 94.0%
FY16 FY17 FY18 FY19
Utilization Rates
17
Company Overview
Industry Overview
Key Investment Highlights
Growth Strategies
Appendix
6
Enhance capacity to widen customer base
• Brownfield Expansion
o Mundra: 56,000 MTPA of Carbon Black recently added
o Palej: 32,000 MTPA of Specialty Carbon Black to be commissioned in FY20
• Greenfield Expansion
o 150,000 MTPA Carbon Black project in South India is under consideration
• Total capacity would increase to 753,000 MTPA in next 2-3 years
Increasing share of value added products
Grow market share in existing geographies
and expand operations to new geographies
• Developing new grades - specialty applications to cater to automotive, consumer electronics and home appliances market
• Moving up the value chain in rubber grades• Customization of grades based on customer requirements
• Penetrating new geographies and increasing customer base• Increasing portfolio of carbon black grades supported by strong R&D• Continue to focus on quality, execution and timely delivery of products and efficient after
sale services
Continue to focus on research and development
• Investing in R&D manpower to strengthen functional capability• Continued focus on R & D for product development, customized solutions, and yield
efficiency by deploying latest technology and equipments.
1
2
3
4
Source: Company 18
Growth Strategies
19
Company Overview
Industry Overview
Key Investment Highlights
Growth Strategies
Appendix
6
Tyres are the largest end usage
Tyre73%
Non-Tyre20%
Specialty Carbon Black7%
India is one of the fastest growing end markets
6-8%
4.1%
3.1%
India China World
Demand CAGR (2017-2022)
12,579 KT1
Carbon Black – Global (1/2)
20
Sectoral Composition in World GDP
Agriculture , 5
Industry, 22
Services, 53
Global GDP composition $ Tn
$ 2.7 trillion $ 200 billion $ 13.8 billion
21
Demand for Tyres & Auto components
Carbon Black demand
Construction, Electronics and other Industrial Applications
Automobile
Demand for other goods like cables, pipes , conductive etc
EconomyOEM
Demand
Carbon Black demand
Carbon Black – Global (1/2) – Demand Drivers
Tyre production is expected to accelerate acrosssegments
2.5%
1.5%
2.2%
3.3% 3.2% 3.3%
Passenger Truck & Bus Total
CAGR (2006-16) CAGR (2016-21)
Significant capex is planned in the tyre sector inview of demand growth
Demand growth is expected to significantly outpace capacityadditions over 2016-21f…
New Investments (2017-22) US$ mn
Asia 8,738
North America 6,761
Europe 3,730
Africa/Mideast 3,124
South America 460
World 22,813
11,072
13,74815,693
17,355
9,39511,324
12,579
14,750
2006 2011 2016 2021f
Capacity ('000 tons) Demand ('000 tons)
78%
83%
84%85% 85% 85%
2016 2017f 2018f 2019f 2020f 2021f
Utilization Rate
…Leading to a significant uptick in utilization rates
Carbon Black – Global (2/2)
Source: Notch, Crisil 22
529 486 534 594 631 744 1,075
1,006 1,084 1,166 1,144 1,171 1,234
1,871 1,535 1,570 1,700 1,738 1,802 1,978
2,946
FY13 FY14 FY15 FY16 FY17 FY18 FY23
OEM demand Replacement demand
Tyre demand is expected to accelerate driven by increase in both OEM & Replacement demand and will provide impetus to carbon black demand
Tyre demand in India (In ‘000 tons)
Widening spread between CBO and CBFS reduces competitiveness of Chinese players
182 203 235267
248
265303 315
357 376 352 350
260 254 277
425395
437
590 555 568 541 589522
Q1FY17 Q3FY17 Q1FY18 Q3FY18 Q1FY19 Q3FY19
CBFS - SE Asia (US$/ton) CBO - China (US$/ton)
• Majority of Chinese manufacturers use the carbon black oil
(CBO) route to manufacture carbon black
• Reduction in Chinese steel production has led to shortage of
Coal Tar (used to derive CBO), thereby increasing CBO prices
Anti-Dumping Duty (ADD) would continue to protect domestic industry
Country ADD (US$/ton) Valid Till
China 397-494 November 2020
Russia 36.17 November 2020
Source: Notch, Crisil, Company 23
Carbon Black – India
90
62
FY15 FY18Carbon Black imports from China ('000 tons)
Levy of ADD has led to reduction in imports from China
Specialty carbon black grades are used in multiple applicationslike plastics compounding, printing inks, paints and coatingsetc
Plastics70%
Inks & Toners
13%
Paints & Coatings
4%
Others13%
865 KT1
Specialty grades have higher product quality andpurity, resulting in much higher pricing
7%
12%
By Volume By Value
Specialty as a % of Total Carbon black market
Demand for Specialty Carbon Black is expected to accelerate
660
750
865
1,025
2006 2011 2016 2021
Global market size ('000 tons)
• Two major categories: Highly proprietary customized gradesand ‘clean’ versions of conventional ASTM rubber grades, which are engineered to have lower residual levels of sulfur, ash, and other contaminants
• Useful in Non Rubber application because of high tint, UV resistance and conductivity.
• 62% of the specialty carbon black market consisted of customized grades, while 38% consisted of clean rubber grades
• Realization usually linked with purity levels.
Source: Notch, Crisil, Company 24
Specialty Carbon Black - Global
2.13 2.01
1.23 1.150.94 465
47240.51 0.50 0.40
CabotCorporation,
USA
Birla Carbon,India
OrionCarbon,
Germany
Black Cat,China
Tokai Carbon, Japan
CSRC,Taiwan
PhillipsCarbon black
, India
Omsk,Russia
Longxing ,China
BaohuaCarbon Black
Top 10 players have a 63% market share
Headquarter USA India Germany China Taiwan India Russia Japan USA China
16% 2%14% 11% 7% 3% 3% 3% 2% 3%Market Share2
Installed Capacity3
(MTPA)
Carbon Black – Capacity & Competitors
Source: Notch, Crisil, Company; Note: 12017; 2Based on 2017 Carbon Black sales; 3As at 2017 year-end, 4PCBL capacity has increased to 515KTPA as of 31 Mar’18 25
6.75
1.701.03 0.99 0.71 4654724
0.48 0.27 0.25
China USA India Russia Japan Korea Brazil Thailand Germany Egypt
Country wise installed capacity
Source: Notch 2018
Installed Capacity3
(MTPA)
44% 3%11% 7% 6% 5% 4% 3% 2% 2%Market Share
26
Company Overview
Industry Overview
Key Investment Highlights
Growth Strategies
Appendix
6
Sanjiv GoenkaChairman
Kaushik Roy ManagingDirector
Shashwat GoenkaNon-Executive
Director
• On the Boards of Directors of the Company w.e.f 1st Septemeber,2014.
• A Bachelor of Science in Economics, (specialization in Finance, Marketing & Management) from The Wharton School, University of Pennsylvania.
• Appointed as President of Indian Chamber of Commerce (ICC) w.e.f 15th July, 2017.
• Has worked in Nestle India Limited and KPMG India. Presently on the Board of Firstsource Solutions Limited, Spencer International Hotels Limited and Retailers Association of India.
• Chairman of PCBL Board and its Director since1986
• Former member of the Prime Minister’s Council on Trade & Industry; Youngest-ever President of Confederation of Indian Industry (CII); Former President of All-India Management Association (AIMA); Chairman of the Board of Governors, Indian Institute of Technology (IIT), Kharagpur; and Chairman of International Management Institute (IMI Delhi, IMI Kolkata and IMI Bhubaneswar)
• Also the Honorary Consul of Canada in Kolkata.
• MTech (Mechanical), IIT Kharagpur; MBA,University of Tokyo; Alumnus of IMD –Switzerland
• Around 30 years spread over Apollo Tyres, a briefstint with Gujrat Ambuja Cement and currentlyPCBL
• Was Indian Tyre Industry Representative on theIndustry Body of International Rubber StudyGroup, Singapore; and also the Member ofGoverning Council, RSDC (Rubber SkillDevelopment Centre), India.
Raj Kumar Gupta CFO
Joined PCBL in 2015 Holds a Bachelor’s degree in Commerce from
St.Xavier’s College and a Qualified CharteredAccountant and Cost Accountant
He started his career with CESC Limited in 1998 asa Management Trainee and has since beenworking with the Group.
Kaushik MukherjeeCompany
Secretary & ChiefLegal Officer
He holds a Bachelor’s degree in Commerce fromSt. Xavier’s College. He is a qualified CharteredAccountant and a qualified Company Secretary.
He is also a Fellow Member of the Institute ofChartered Accountants of India and the Instituteof Company Secretaries of India.
He started his career with CESC Limited in 1993and has since been working with the Group
Senior Leadership Team (1/2)
27Source: Company
Sabyasachi Bhattacharya
Chief – HR & IT
BA (Hons), University of Calcutta; MBA, IISWBM More than 25 years spread over Reckitt Benckiser,
Coates of India, Hutchison, Haldia Petrochemical,Berger Paints, Saregama India Ltd, SherwinWilliams and currently PCBL
Jiten KeluskarChief
Procurement Officer
Dr Mosongo MoukwaChief –
Global R&D
• PhD (Chemical Engineering) Universite de Sherbrooke; MBA (Marketing & Finance), Case Western Reserve University
• More than 26 years spread over BASF - Master Builders Technologies, SC Johnson Polymer Division, Reichhold, Innovation Tipping Point, Asian Paints, PolyOne and currently PCBL
• BE, Walchand College of Engineering; ADCSSA, Government Polytechnic Bandra; ICWA; CPM, Institute of Supply Management
• More than 27 years spread over Reliance Industries Ltd, Cummins India Ltd, Mahindra & Mahindra Ltd, Siemens Ltd, Crompton Greaves Ltd, ACC Ltd (Mumbai) and currently PCBL
Gautam KaliaHead –
International Markets
(Rubber Blacks)
• BTech (Mechanical) - University Topper & Gold Medalist, Rani Durgavati University, Jabalpur; PGDBA, XLRI Jamshedpur
• More than 20 years spread over Larsen & Toubro Ltd and currently PCBL
Mainackya Ghosh
Head – National Markets
(Rubber Blacks)
• BCom (Hons), City College, Kolkata; Certificate course in Export, Indian Institute of Foreign Trade; PGDM, International Management Centre, New Delhi
• 18 years spread over ICM (Export House), ITC (Tobacco Division India), Orind Refractories Ltd, Liaoning, Birla Carbon Company Ltd, Quingdao Eastlion I&E Co Ltd, Continental Carbon India Ltd, Himadri Chemicals & Industries Ltd and currently PCBL
Girish SinghChief - Projects,
Specialty Process & Technology
• BTech (Chemical), IT BHU• Around 40 years spread over Oriental Carbon,
Ralson Carbon, Hi- Tech Carbon, Liaoning Birla Carbon and currently PCBL
28Source: Company
Arun BatraHead of Specialty
Carbon Black
Holds a degree in BSc from Hindu College, Rohtakand a Masters in Management Studies fromNMIMS, Mumbai
Has ~30 years of work experience and has workedin companies like Air India, Berger Paints IndiaLtd, Lafarge India Pvt Ltd
Sunil ChauhanHead of
Manufacturing
BTech & MTech in Chemical from IIT and PGDBA Has around 23 years of work experience spread
over Reliance Industries Ltd, Tata Chemicals Ltdand currently PCBL Utpal Saha
Head of Projects & Development
Holds a B.Tech in Mechanical engineering from IITDelhi
Has over 40 years of work experience spread overPhilips India, Mahindra & Mahindra, Molins IndiaLimited, Shriram Bearing Limited and PCBL
Senior Leadership Team (2/2)
Top Exports (Raw Material
Sector) , for last 5 years
by All India Rubber
Industries Association
J K Fenner – Best Supplier Award in
2017
Kerala State Pollution Control
Board Certificate of Merit-
Third Position (Large
Industries) for Kochi plant in
2017 and 2015
Parker Fluid Connectors, India -
Supplier Excellence Award in 2016
National Convention on Quality
Concepts, 2016 organized by
Quality Circle Forum of India –
Award par Excellence
Times Ascent and People Business,
The Great Manager Awards –
Company with Great Managers,
2016
Key Awards
29Source: Company
Financial
Year
Installed capacity
(on equivalent basis)
Effective capacity for carbon
black
(based on product mix)
Capacity actually
produced
Capacity Utilization (%) (as
a % of effective capacity)
2018-19 571,000 437,019 410,798 94.0%
2017-18 488,000 420,120 399,904 95.1%
2016-17 472,000 406,808 383,316 94.2%
2015-16 472,000 407,869 332,038 81.4%
Note: In any carbon black manufacturing industry, various grades are manufactured in each production line. As per the quality
specification, manufacturing process for each grade requires a different process parameter that results in capacity for each grade
to be different from the same line. Since each grade has a different output from the same production line, to define the capacity
of a line, the grade with the maximum capacity is identified and the production capacity of this grade is defined as the Equivalent
Capacity. We have defined the production capacity of tread reactor for grade N330 and for Carcass line, it is defined for grade
N660. Subsequently, an equivalent factor is calculated for each grade that defines the actual production that will be achieved
from each line for each grade. The Equivalent Capacity is therefore the maximum capacity that any factory can produce if only
grade N330 and N660 are being produced. Since our customers require us to produce all the grades, the product mix required to
be manufactured keeps on changing. Before debottlenecking, the Equivalent Capacity of our Company was 472,000 MTPA and
the actual capacity based on grade mix was 408,000 MTPA. Post debottlenecking, the Equivalent Capacity of our Company is
515,000 MTPA with Actual Capacity of 440,450 MTPA.
Capacities in MTPA
Capacity Details
30Source: Company
31
PCBL Plants
Thank You